Plain Sense Economics

Each term our principles of economics classes look at the issues of free trade versus protectionism. We review the theory – comparative advantage – that argues for free and open markets among nations. And we review the common arguments used to defend tariffs and other trade restrictions. At the top of this list is saving [...]

As we wrapped up the last week of the Winter Term in the principles classes, our attention turned to trade policy. I admitted to my students that I’m a “free trade guy,” and I invited them to make up their own minds about free versus protectionist trade.
Today’s lead editorial in the New York Times [...]

For a very nice, clear explanation on how trade exports and import impact our GDP, see this posting from Economix.
Written by Bob McTeer, former president of the Federal Reserve Bank of Dallas:
Foreign trade has become more important to our economy in recent years. Exports and imports of goods and services have grown rapidly. A growing [...]

We read/hear in the news media about changes to the U.S. trade deficit. This page from the Census Bureau shows that in the month of October, 2007 the trade deficit was $57.8 billion. That’s large in anyone’s book, but it is not ballooning as it has in earlier months. Two forces (at least) are at [...]